Top 5 Myths About Life Insurance

You know those claims you hear about certain
things, yet you’re never certain if it’s just people talking hearsay and not
providing any sort of evidence as to what they’re saying? Sometimes, you just
want to question them to see if they know what they’re talking about.

Well, life insurance is one of those things most
people know they should likely have, but a lot of myths surround the topic.
Here, we’ll put to rest some of those claims you may have heard about this type
of insurance.

1. I’m single with no dependents and
don’t need coverage.
You still need enough insurance to cover any personal debts you may have, along
with medical and funeral bills that could rack up in the event you’re struck by
disaster. You don’t want to leave unpaid expenses to your family or someone
else if you happen to be uninsured. Another thing is that you can leave money
to a charity of your choice if you do happen to be single with a low income.

2. I must
have life insurance at any cost.
You should probably have it in most cases. The thing is, certain individuals
with huge assets but no debt or dependents might choose to not insure their
lives. If you have funeral costs covered, too, this type of insurance is
considered optional.

3. My coverage should be two times my
salary.
Your insurance needed is dependent on your own situation, with many factors
that need weighed. Not counting your medical and funeral bills, you may also
need to pay off a mortgage and even provide for your family over the course of
several years. The true amount of insurance you might purchase all comes down
to a cash flow analysis. It’s not as easy as doubling your yearly salary.

4. My term life coverage at work is
already enough.
It could be, especially if you’re single and your employer’s coverage is decent
enough. But if you’re married or have other dependents or know that you’ll need
extra coverage upon death, you may actually need a separate policy to help
cover the needs.

5. Only the person making the money
needs coverage.This is far from the truth. Even if one spouse is making significantly more
money than the other or one is stay at home, there are other factors to
consider such as daycare and cleaning costs that the stay-at-home spouse may
have been responsible for.